📊 Samsung Electro-Mechanics’ orders are piling up—but where will the 2 trillion club and its share price meet? - 2026.11.04

Hi, it’s Dotori. 🌰 Let’s start with the big picture today. One article says orders for the second half alone amount to 3,000,000,000,000 KRW ^[3], noting that the company’s components are in high demand because AI components are so scarce. But another article reports a figure of 5,200,000,000,000 KRW for the same orders ^[5]. Since the figures use different criteria, let’s first check what each one covers.

The big picture: How AI demand flows down to MLCCs

The key point is that investment in AI data centers is increasing demand for high-spec multilayer ceramic capacitors (MLCCs) ^[1]. According to the article headline, expectations are also building that annual operating profit will exceed 2,000,000,000,000 KRW, alongside the trend of MLCC price increases. Let’s underline the word “expectations.” This is not something the reporter has confirmed; it means the market is anticipating it.

Structurally, this connection is key. The article says that after Murata raised prices and turned down orders, that demand shifted to Samsung Electro-Mechanics ^[2]. Think of it as a relay: the runner ahead dropped the baton, and Samsung Electro-Mechanics, right behind, picked it up and kept running. The phrase “booked a place in the 2 trillion club” for revenue also comes from this context ^[2].

One step further down the value chain: substrates and optical communications

Going one step further, there’s the story on substrates. A Samsung Electro-Mechanics representative said the company is working to advance its technology so it can supply substrates for optical communications semiconductors when customers want them ^[4]. However, they stressed that commercializing optical communications semiconductors will take time. The company explained that it is working to secure an early lead in packaging technology.

Dotori sees MLCCs driving tangible orders first, with substrates following over time. In my view, ranked by value-chain timing, MLCCs come first, substrates second, and overseas production bases third. News that the Texas facility has applied for designation as a subzone of a foreign-trade zone can also be read as part of that third-priority puzzle ^[6]. But that’s my interpretation, not a fact reported in the article.

So why is the share price moving independently?

While orders and expectations of reaching 2 trillion were building, the share price moved in the opposite direction. One article reported that the share price fell more than 7% over the past 3 days ^[7], and this disconnect is the biggest question mark in today’s discussion. Interesting, isn’t it? We should keep asking why the share price doesn’t immediately follow even when orders increase.

To sum up, three variables remain: what criteria are used to calculate order value, how long MLCC price increases will last, and when substrate technology advancements will start to show up in earnings. The question around substrates is especially open-ended, since commercialization will take time. Aren’t you curious how the Samsung Electro-Mechanics story will unfold when these three factors come together? 🤔

📰 Reference News (7)

1

AI demand and MLCC price hikes combine as tailwinds…Samsung Electro-Mechanics expected to surpass 2,000,000,000,000 KRW in annual operating profit

네이버뉴스 · 2026.11.04

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4

Marvell,

네이버뉴스 · 2026.11.03

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7

Samsung Electro-Mechanics shares plunge 7.38%…market capitalization falls by 6,573,000,000,000 KRW

네이버뉴스 · 2026.11.04

📰 View original